4 DP-Prod Levels - 1 Changing Production Levels Consider a...

1Changing Production LevelsConsider a production planning problem where demands in each period do not have to be met and excess production can not be carried over into the next period. This problem is one of changing the production levels over a planning horizon so as to minimize the sum of the costs of production level changes and the costs associated with being under or over the product demand each period. The cost of not meeting demand is assumed to be $3 times the under-run quantity squared. The cost of over production is $5 per unused unit, and there is no carry over of these units to future periods. Changing production levels is an expensive proposition and for a production level change of ∆pthe cost is estimated to be $10|∆p| + 2∆p2. Starting with an existing production level of 30 units, we want to minimize the cost for three time periods with demands (40, 20, 30). In addition, production level changes are restricted to 5 unit increments or decrements. (This restriction is added merely to reduce the computational effort of the example problem and in particular the display requirements.) Let pt

This preview has intentionally blurred sections.
Sign up to view the full version.

What students are saying

As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran
Temple University Fox School of Business ‘17, Course Hero Intern

I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana
University of Pennsylvania ‘17, Course Hero Intern

The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.